2024-11-15T11:42:52-06:00 2023-12-31 910189318 MOSS ADAMS LLP 6565 AMERICAS PARKWAY NE STE 600 ALBUQUERQUE NM 87110 990 2023-01-01 364641426 NEW MEXICO GAS COMPANY INC UNION VEBA TRUST AGMNT FOR RETIREES SUBJ TO COLLECT NEWM 5056973398 7120 WYOMING BLVD NE STE 20 ALBUQUERQUE NM 87109 ERIK BUCHANAN VP, FINANCE 5056973800 2024-11-15 1 1 PAMELA ALEXANDERSON P01218925 5058787200 2024-11-14 2023 2024-10-15 13:58:12Z ERIK BUCHANAN 7120 WYOMING BLVD NE STE 20 ALBUQUERQUE NM 87109 73445 0 X N/A X 2009 NM PROVIDE FUNDING FOR FUTURE MEDICAL, DENTAL AND VISION BENEFITS FOR CURRENT AND FUTURE UNION RETIREES AND THEIR DEPENDENTS. 6 0 0 0 57119 53494 0 0 0 0 65559 57119 4600 9457 70159 66576 0 0 70110 59013 2500 0 0 0 0 4393 3347 77003 62360 -6844 4216 1679429 1886102 31183 86710 1648246 1799392 X THIS TRUST IS ESTABLISHED FOR THE PURPOSE OF HOLDING ASSETS IN ACCORDANCE WITH SECTION 403 OF ERISA, PENDING THE PAYMENT OF RETIREE BENEFITS. NO PORTION OF THE TRUST FUND MAY BE USED OTHER THAN IN THE SOLE AND EXCLUSIVE INTEREST OF PARTICIPANTS, WHOSE ELIGIBILITY TO PARTICIPATE RESULTS FROM EMPLOYMENT AS A UNION EMPLOYEE. THE IMMEDIATELY PRECEDING SENTENCE SHALL NOT BE CONSTRUED TO LIMIT THE TRUSTEE'S ABILITY TO PAY TAXES AND ADMINISTRATIVE EXPENSES FROM THE TRUST FUND. 0 0 PROVIDE FUNDING FOR FUTURE MEDICAL, DENTAL AND VISION BENEFITS FOR CURRENT AND FUTURE UNION RETIREES AND THEIR DEPENDENTS OR OTHER PLAN OPERATING EXPENSES OR FOR PURPOSES INCIDENTAL TO THE PLAN'S ORDINARY OPERATION. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 X 6 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 0 0 0 0 X NEW MEXICO GAS COMPANY INC 5056973398 7120 WYOMING BLVD NE STE 20 ALBUQUERQUE NM 87109 GREG BLUNDEN CHAIR CFO/TREASURER, TECO ENERGY, INC. 0.00 X 0 0 0 DAVID NICHOLSON VP LEGAL GENERAL COUNSEL, TECO ENERGY, INC. 0.00 X 0 0 0 JEFF CHRONISTER VP FINANCE, TAMPA ELECTRIC COMPANY 0.00 X 0 0 0 JOANN WEHLE VP STRATEGY MKTING & SALES, PEOPLES GAS SYSTEM 0.00 X 0 0 0 DENISE WILCOX VP HR & CORPORATE SECURITY, NM GAS CO. 0.00 X 0 0 0 MARIAN CACCIATORE VP HUMAN RESOURCES, TAMPA ELECTRIC COMPANY 0.00 X 0 0 0 PNC BANK TRUSTEE 1.00 1.00 X 0 16646 0 0 16646 0 0 0 0 0 0 51488 51488 12500 6869 5631 5631 5631 INSURANCE REIMBURSEMEN 900099 7132 7132 TAX REFUND 900099 2325 2325 9457 66576 7132 57119 2325 59013 3347 62360 2590 2796 206098 227473 1470741 1655833 1679429 1886102 31183 86710 31183 86710 X 1648246 1799392 0 0 0 0 1648246 1799392 1679429 1886102 4216 146930 0 X 0 1 X 1 0 0 23775 DUE TO PLAN SPONSOR 62935 86710 X PART X, LINE 2: THE VEBAS ESTABLISHED UNDER THE PLAN TO HOLD THE PLAN'S ASSETS ARE INTENDED TO QUALIFY PURSUANT TO SECTION 501(C)(9) OF THE IRC AND, ACCORDINGLY, THE TRUSTS' NET INVESTMENT INCOME IS EXEMPT FROM INCOME TAXES. THE UNION VEBA TRUST AND NON-UNION VEBA TRUST OBTAINED FAVORABLE TAX EXEMPTION LETTERS DATED AUGUST 7, 2014 AND JULY 9, 2014, RESPECTIVELY, FROM THE INTERNAL REVENUE SERVICE, AND THE PLAN SPONSOR BELIEVES THAT THE TRUSTS CONTINUE TO QUALIFY AND OPERATE IN ACCORDANCE WITH THE APPLICABLE PROVISIONS OF THE IRC. ALTHOUGH THE PLAN FOR THE NON-BARGAINING UNIT RETIREES AND THE RELATED TRUST ARE DESIGNED IN ACCORDANCE WITH APPLICABLE SECTIONS OF THE IRC, AND THE NON-UNION TRUST IS EXEMPT FROM MOST FEDERAL INCOME TAXES, INVESTMENT INCOME OF THE TRUST HOLDING THE ASSETS FOR THE NON-BARGAINING UNIT RETIREES CONSTITUTES UNRELATED BUSINESS INCOME. THIS INCOME SUBJECTS THE NON-BARGAINING UNIT RETIREES' TRUST TO FEDERAL UNRELATED BUSINESS INCOME TAX. SINCE THE BARGAINING UNIT DECERTIFIED ITS UNION STATUS IN 2012, THE PLAN FOR THE BARGAINING UNIT RETIREES IS SIMILARLY SUBJECT TO UNRELATED BUSINESS INCOME TAX. THE TAX PROVISION FOR THE NON-BARGAINING UNIT RETIREES' TRUST AND BARGAINING UNIT RETIREES' TRUST CONSISTS OF CURRENT INCOME TAX BENEFIT OF $2,325 FOR THE YEAR ENDED DECEMBER 31, 2023. THE PREPAID INCOME TAX AS OF DECEMBER 31, 2023 AND 2022, RESPECTIVELY, IN THE AMOUNTS OF $229,874 AND $208,499, CONSIST OF AMOUNTS PAID IN ADVANCE RELATED TO FUTURE TAXES DUE. THE INCOME TAX PAYABLE IN THE AMOUNTS OF $23,775 AND $26,100 CONSIST OF AMOUNTS DUE AS OF DECEMBER 31, 2023 AND 2022, RESPECTIVELY. IN ACCORDANCE WITH GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, MANAGEMENT EVALUATED THE PLAN'S TAX POSITIONS AND DOES NOT BELIEVE THE PLAN HAS ANY UNCERTAIN TAX POSITIONS THAT REQUIRE DISCLOSURE OR ADJUSTMENT TO THE FINANCIAL STATEMENTS. FORM 990, PART VI, SECTION A, LINE 1A THE NEW MEXICO GAS COMPANY, INC. UNION VEBA TRUST WAS ESTABLISHED BY NEW MEXICO GAS COMPANY, INC. (NMGC), PLAN SPONSOR, ON JANUARY 1, 2009, UNDER INTERNAL REVENUE CODE (IRC) SECTION 501(C)(9) FOR THE PURPOSE OF HOLDING ASSETS TO PROVIDE FUTURE MEDICAL, DENTAL AND VISION BENEFITS (HEALTH BENEFITS) AND OTHER ORDINARY PLAN EXPENSES FOR NMGC UNION RETIREES AND THEIR ELIGIBLE DEPENDENTS. ASSETS HELD IN THIS TRUST MAY NOT BE USED FOR, OR DIVERTED TO, ANY PURPOSE OTHER THAN PROVIDING HEALTH BENEFITS AND OTHER ORDINARY PLAN EXPENSES FOR ELIGIBLE NMGC UNION RETIREES AND THEIR BENEFICIARIES AS PROVIDED IN THE NEW MEXICO GAS COMPANY, INC. COMPREHENSIVE RETIREE HEALTH PLAN (PLAN). TRUSTEE FEES AND INVESTMENT-RELATED EXPENSES ARE ALSO PAID BY THE TRUST. ALL OTHER COSTS OF THE TRUST ARE PAID BY NMGC. THE TRUST DOES NOT HAVE EMPLOYEES AND DOES NOT PAY WAGES OR PROVIDE EMPLOYEE BENEFITS. THE VEBA TRUST HAS OBTAINED A FAVORABLE TAX DETERMINATION LETTER FROM THE INTERNAL REVENUE SERVICE DATED SEPTEMBER 11, 2009, AND THE PLAN SPONSOR BELIEVES THAT THE TRUST, AS AMENDED, CONTINUES TO QUALIFY AND TO OPERATE IN ACCORDANCE WITH THE APPLICABLE PROVISIONS OF THE IRC. NMGC IS THE PLAN SPONSOR. THE BOARD OF DIRECTORS OF EMERA INC., PARENT COMPANY OF NMGC, HAS ESTABLISHED AN EMPLOYEE BENEFIT PLANS COMMITTEE (COMMITTEE) TO BE RESPONSIBLE FOR THE ADMINISTRATION OF THE PLAN. THE COMMITTEE CONSISTS OF THREE MEMBERS, AS OUTLINED IN THE COMMITTEE'S CHARTER, ALL OF WHICH ARE ALSO EMPLOYEES OF EMERA. ALL SALARIES, WAGES AND BENEFITS FOR THE MEMBERS OF THE COMMITTEE, IF ANY, ARE PAID BY EMERA AND NOT BY THE TRUST. ALTHOUGH THE COMMITTEE IS AUTHORIZED TO MAKE CHANGES TO THE PLAN, THE EMERA BOARD RETAINS THE RIGHT TO MERGE OR TERMINATE THE PLAN. THE COMMITTEE SETS THE INVESTMENT ALLOCATION FOR INVESTMENTS HELD BY THE TRUST. WRITTEN MINUTES OF ALL MEETINGS HELD BY THE COMMITTEE ARE MAINTAINED BY THE COMMITTEE MEMBERS. PNC BANK IS AN INSTITUTIONAL TRUSTEE ONLY AND HAS NO VOTING AUTHORITY ON THE BOARD OF DIRECTORS. AT THE END OF 2011, 41 OF THE 51 NMGC UNION EMPLOYEES VOTED TO DECERTIFY THEIR UNION EMPLOYEE STATUS. THIS RESULTED IN THE TERMINATION OF THE COLLECTIVE BARGAIN AGREEMENT THAT HAD BEEN IN EFFECT FOR THOSE EMPLOYEES. EFFECTIVE JANUARY 1, 2012, ONLY 10 EMPLOYEES REMAINED IN THE UNION AND THEY DECERTIFIED LATER IN THE YEAR. PRIOR TO THESE UNION DECERTIFICATIONS, THE UNION VEBA WAS EXEMPT FROM UNRELATED BUSINESS INCOME TAX UNDER INTERNAL REVENUE REGULATIONS APPLICABLE TO VEBAS MAINTAINED UNDER COLLECTIVE BARGAIN AGREEMENTS. BECAUSE THESE COLLECTIVE BARGAIN AGREEMENTS ARE NO LONGER IN EFFECT, THE VEBA IS NOW SUBJECT TO ACCOUNT LIMITS AND THE IMPOSITION OF UNRELATED BUSINESS INCOME TAX ON ITS INVESTMENT INCOME. FORM 990, PART VI, SECTION B, LINE 11B THE ANNUAL PLAN AUDIT AND THE ANNUAL GOVERNMENT FILINGS ARE REVIEWED BY THE BENEFITS COMMITTEE PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINES 12-14 THE NEW MEXICO GAS COMPANY, INC. UNION VEBA TRUST DOES NOT HAVE WRITTEN POLICIES FOR CONFLICT OF INTEREST, CODE OF CONDUCT, WHISTLE-BLOWER OR DOCUMENT RETENTION AND DESTRUCTION. NMGC, HOWEVER, DOES HAVE ALL OF THESE WRITTEN POLICIES IN PLACE, WHICH GOVERN ALL CORPORATE ACTIVITIES AS WELL AS THE ACTIVITIES FOR ASSOCIATED BENEFIT PLANS AND THEIR RELATED TRUSTS. WORKING WITH INDEPENDENT INVESTMENT ADVISORS, THE COMMITTEE HAS DEVELOPED A WRITTEN INVESTMENT POLICY FOR ASSETS HELD IN THE TRUST. ALL INVESTMENT AND OTHER ACTIVITIES OF THE TRUSTEE ARE UNDER THE DIRECTION OF THE COMMITTEE, WHOSE MEMBERS ARE SUBJECT TO THESE ESTABLISHED POLICIES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. FORM 990, PART VI, LINE 9: CONTACT ADDRESSES FOR OFFICERS, DIRECTORS, ETC PNC BANK ATTN: ALEX WRIGHT, AVP, RELATIONSHIP MANAGER 1900 E. 9TH ST., 8TH FLOOR CLEVELAND, OH 44114 NEW MEXICO GAS CO INC NON-UNION VEBA TRUST 7120 WYOMING BLVD NE STE 20 ALBUQUERQUE NM 87109 320260036 BENEFIT PLAN NM 501(C)(9) N/A 0 NEW MEXICO GAS COMPANY INC 7120 WYOMING BLVD NE STE 20 ALBUQUERQUE NM 87109 262145114 NATURAL GAS DISTRIBUTION NM N/A C 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1